Huang Company's last dividend was $1.25. The dividend growth rate is expected to be constant at 27.5% for 3 years, after which dividends are expected to grow at a rate of 6% forever. If the firm's required return (rs) is 11%, what is its current stock price? Do not round intermediate calculations.
A. $41.08
B. $40.63
C. $36.11
D. $45.14
E. $52.36
Answer: D
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